PLEASE ANSWER ALL QUESTIONS AND SHOW ALL CALCULATIONS!!!!!!!!!!
A student organization has been given permission to operate a pizza stand during the upcoming homecoming weekend. The stand will be located just outside the football stadium, making it accessible during the game. The location is also convenient for visitors as they tour the campus at other times during the weekend. An estimated 2,500 visitors will be on campus, in addition to the campus population of 1,500. Each pizza requires: 1/2 pound of pizza flour 2 ounces of pizza sauce 1/8 pound of pepperoni 1/2 pound of cheese Oz-ounce Ib = pound 16 oz = 11b Pizza flour costs $8.00 per 10-pound bag Pizza sauce, $4.80 per 64-ounce jar Pepperoni, $18.00 per 10-pound package Cheese, $15.00 per 5-pound package Club members will cook the pizzas and staff the stand on a volunteer basis. The university requires each vendor to pay a $25 permit fee and a $50 refundable deposit on the building. Your club plans to donate the profits from the pizza sales to a local children's hospital. How many pizzas can you anticipate selling? This can be complicated. Factors such as the weather, time of day, and presence of other food vendors would have to be considered. Obviously, you would have to consider the demand for pizzas at several price points. The simplest method for answering this question is to estimate sales as a percentage from the total market. Fixed Costs: Variable Cost/Pizza (Based on your calculations from the table below): Cost per ounce Cost per pizza Ingredient Pizza flour Pizza sauce Amount per pizza 8 oz (1/2 lb) 2 oz (1/8 lb) Cost of ingredient $8.00 per 101b $4.80 per 64oz $18.00 per 10lb $15.00 per 5lb Pepperoni 2 oz (1/8 lb) Cheese 8 oz (1/2 lb) Variable Cost/Pizza = What price should you charge per pizza? Use cost-based pricing to determine your price. How much of each raw material will you need and what will it cost? Calculate below: Amount per pizza 8 oz (1/2 lb) Total ounces needed Total pounds Ingredient Pizza flour Potential sales units This is the number you indicated in your answer to question #1. 2 oz (1/8 lb) Pizza sauce Pepperoni Cheese 2 oz (1/8 lb) 8 oz (1/2 lb) Pizza flour - Need Pizza sauce - Need Pepperoni - Need Cheese - Need X $8.00/10lb = X $4.80/64oz = X $18.00/10lb = X $15.00/5lb = Total cost of all raw materials used 4. What will be your probable profit? (Show your calculation) A student organization has been given permission to operate a pizza stand during the upcoming homecoming weekend. The stand will be located just outside the football stadium, making it accessible during the game. The location is also convenient for visitors as they tour the campus at other times during the weekend. An estimated 2,500 visitors will be on campus, in addition to the campus population of 1,500. Each pizza requires: 1/2 pound of pizza flour 2 ounces of pizza sauce 1/8 pound of pepperoni 1/2 pound of cheese Oz-ounce Ib = pound 16 oz = 11b Pizza flour costs $8.00 per 10-pound bag Pizza sauce, $4.80 per 64-ounce jar Pepperoni, $18.00 per 10-pound package Cheese, $15.00 per 5-pound package Club members will cook the pizzas and staff the stand on a volunteer basis. The university requires each vendor to pay a $25 permit fee and a $50 refundable deposit on the building. Your club plans to donate the profits from the pizza sales to a local children's hospital. How many pizzas can you anticipate selling? This can be complicated. Factors such as the weather, time of day, and presence of other food vendors would have to be considered. Obviously, you would have to consider the demand for pizzas at several price points. The simplest method for answering this question is to estimate sales as a percentage from the total market. Fixed Costs: Variable Cost/Pizza (Based on your calculations from the table below): Cost per ounce Cost per pizza Ingredient Pizza flour Pizza sauce Amount per pizza 8 oz (1/2 lb) 2 oz (1/8 lb) Cost of ingredient $8.00 per 101b $4.80 per 64oz $18.00 per 10lb $15.00 per 5lb Pepperoni 2 oz (1/8 lb) Cheese 8 oz (1/2 lb) Variable Cost/Pizza = What price should you charge per pizza? Use cost-based pricing to determine your price. How much of each raw material will you need and what will it cost? Calculate below: Amount per pizza 8 oz (1/2 lb) Total ounces needed Total pounds Ingredient Pizza flour Potential sales units This is the number you indicated in your answer to question #1. 2 oz (1/8 lb) Pizza sauce Pepperoni Cheese 2 oz (1/8 lb) 8 oz (1/2 lb) Pizza flour - Need Pizza sauce - Need Pepperoni - Need Cheese - Need X $8.00/10lb = X $4.80/64oz = X $18.00/10lb = X $15.00/5lb = Total cost of all raw materials used 4. What will be your probable profit? (Show your calculation)
